It Is Always Better for a Firm to Have a High

question 125

True/False

It is always better for a firm to have a high inventory turnover ratio than a low turnover ratio.

---

Definitions:

Average Daily Receipts

The average amount of cash flow received by a business per day over a defined period of time.

Collection Delay

The time lag between when a sale is made and when the payment is actually received, affecting cash flow.

Average Amount

The sum of individual amounts divided by the number of amounts, representing a central value or typical amount in a set of data.

Weighted Average Delay

An estimation of the average delay in time, considering the relative importance or weight of each contributing factor.